Convenience stores amp up their 'quick commerce' game
Convenience stores are rapidly expanding deliveries to better compete with online shopping.
7-Eleven announced Wednesday it added WeMakePrice O2O as a partner to get its products delivered to customers.
That's part of a greater emphasis on "quick commerce," or retail that promises to deliver products within an hour.
WeMakePrice O2O is the third partner 7-Eleven has teamed up with to expand its quick commerce offerings.
The first was Yogiyo, a food delivery app, in February 2020, followed by Kakao Talk last February.
Around a thousand types of products can now be delivered from 7-Eleven stores, ranging from dosirak (packaged meal) to deserts and health and beauty items.
WeMakePrice O2O deliveries will be available from 1,000 7-Eleven branches, and be expanded to 4,300 stores by next month and 6,000 stores by the end of the year.
There are currently 10,800 7-Eleven stores in Korea.
The company also plans to raise the number of companies it partners with for quick commerce delivery to nine in the second half.
7-Eleven said its quick commerce orders last month jumped 1,090 percent from the same period a year earlier.
GS Retail, operator of GS25 convenience stores, said last week that it is acquiring Delivery Hero Korea, which runs Yogiyo, to boost its quick commerce ability.
GS Retail is acquiring Delivery Hero Korea in a consortium with investment firms Affinity Equity Partners and Permira. “We believe we could become the No.1 quick commerce service provider quickly,” GS Retail said.
“Quick commerce is expected to function as a game changer at this time when mobile shopping has expanded due to Covid-19,” it continued.
The quick commerce market is projected to reach at least 5 trillion won ($4.3 billion) in sales by 2025, according to a GS Retail estimate.
Woowa Brothers, operator of the Baedal Minjok delivery app, and Coupang Eats are other companies that offer quick commerce service.
BY JIN MIN-JI [firstname.lastname@example.org]